How to Reduce the Cost and Risks in Transportation and Logistic Management?
The transportation and logistics management is an art and essential to enhance a business. They involve a series of activities in a business and play a critical role right from the manufacturing the material. You can even argue that the transportation starts before the manufacturing because it brings the raw materials to the manufacturing site and performs the final activity by transporting the manufactured materials to the wholesales, retailers, even right near to the consumers to the selling points. However, transportation and logistics management trade is also an independent business which is not associated with manufacturing but renders advanced, systematic and expert transportation and logistics services independently in a specialised manner. Get in touch with Fortuna Transport for high level and systematic transportation and logistics management services.
The success of transportation and logistics management trade depends upon how skilfully and efficiently you balance to perform the activities in your transportation and logistic related services and the costs involved in it. The first step towards reducing the costs of transportation is to look for closer proximity instead of longer roots for your transportation. This will minimise unnecessary expenditures in the transportations. You can do this by exploring suppliers who have the requirement of transporting their materials to comparatively closer distances.
Another way of effectively reducing the costs of transportation is to look for materials which are already partially assembled, and buy them from the vendors in order to reduce the numbers of transportation trips required for shipping raw materials.
Conscious reduction of logistics costs is generated though JIT or Just In Time manufacturing. In order to get the minimum stock at hand, use the MRP or Material Resource Planning system to time orders. You can further order the parts in packaging which can be directly stocked in the warehouse. This will eventually reduce the unnecessary activities of receiving the materials, unpacking them, and further labelling the products with owner’s inventory management processes. You can also directly work with the suppliers to get RFID or bar code labels. This will allow the entire supply chain for using the same equipment and part numbers for necessary tracking and inventory management.
One of the potential risks of failure in transportation and logistics management is the long distance between the suppliers and distribution centres or factories. Eventually, this will increase the risk of JIT failure leading to a bad MRP. This is the reason most factories or distribution centres are built close to their main suppliers. If your delivery van or truck is not able to depart in time, you must have alternative plans to mitigate the risks.